By an imperial decree set by Napoleon on March 21, 1806, the Kingdom of Italy was to be given a new coined currency that would effectively replace the coins already in circulation. The coins were produced the following year in 1807 and continued to circulate until 1814, when France's defeat against the Habsburgs resulted in the disestablishment of the kingdom.

Starting in 1807, coins of the lira were produced at three mints: Bologna, Milan, and Venice. Currency was minted in denominations of 1, 3, and 10 centesimi; 1, 5, 10, and 15 soldi; and 1, 2, 5, 20, and 40 lire. Also, the town of Palmanova issued two siege coins in 1814 using denominations of the lira.